Recent research suggests that 1 bedroom apartments have the best rental yield, 2 bedroom flats are a close second and 3 bedroom flats/houses in third place. There are, of course, regional variations, but in general I would concur with these findings.
So, does that make 1 bedrooms the best buy to let option?
I have given advice to hundreds of Landlords looking to invest in buy to let properties, and as long as you follow the basic rules, every type of property has its advantages and disadvantages. There is no hard rule, it comes down to usage, location and market conditions.
1-bedroom properties will, in general, give you the best rental yield, but a 2 or 3 bedroom property will grow more in value delivering a better return in terms of capital growth. This evens things out over the medium to long term.
If the housing sales market
goes through a dip and you need to sell an asset, then 2- or 3-bedroom
properties will often sell before a 1 bedroom.
There are many variables in play and when it comes to buying the best property to maximise your return will be greatly affected by factors such as area, budget, local demand etc.
If you need any advice, and cannot find the answers on my website, then please feel free to call or email me with any questions you may have. My advice is free of charge and comes with no strings attached.
